Contract Farming: An Approach for Agriculture Development

S.K. Badodiya, C.L.Gour, P. Sharma and Hari Ram


Contract farming is agricultural production carried out according to an agreement between a buyer and farmers, which establishes conditions for the production and marketing of a farm product or products. Typically, the farmer agrees to provide established quantities of a specific agricultural product, meeting the quality standards and delivery schedule set by the purchaser. In other words- Contract Farming is defined as a system of production and supply of agricultural/horticultural produce under forward contracts between producers/ suppliers and buyers. The essence of such an arrangement is the commitment of the producer to provide an agricultural commodity of a certain type, at a time and a price, and in a quantity required by a known and committed buyer.

Keyword: Contract farming; Agricultural production;Production; Marketing; Committed buyer;

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